What is Hosted and Installed Software?

There are two ways to implement software in your organization: hosted and installed.

Hosted software is hosted by a third-party provider and accessed via a web browser. This is the simplest option, as you don't need to install any software on your own computers. All you need is a compatible web browser and a login to access the timesheet software.

Installed software is installed on your own computers or on a private cloud (like AWS or Azure). This gives you more control over the software, but it also requires more maintenance and administration. You will need to install, update, and back up the software yourself.

What is the differences between the hosted and installed software?

The table below summarizes the differences:

Features Hosted Version Installed version
Also known as Known as SAAS(Software as a Service) or cloud-based software Known as on-premise software
Set up Easy to set up as it can be done using a browser from anywhere Installation and setup usually is done by the customer
System requirements In most cases a compatible browser is required Requires hardware (or private cloud) and the timesheet software to install
Cost Less expensive in the short term as most of them are priced at per user per month. In long term the pricing may add up Installation and startup cost is more than the Hosted version. However, in most cases it is a one-time cost. Long time cost savings is achieved by avoiding monthly fees. Some company charges an upgrade every year at about 20% to 25% of the initial cost
Data and Privacy Data is hosted on vendor's server (or a private cloud like AWS). Data may be compromised if the vendor server is targeted Data is hosted on customer's computer or server. So, the privacy depends on following best practices by the customer
Scalable Customer has no control on the scalability. Vendor can scale the resources depending on their ability Customer has full control on the scalability. It may however, add to the initial cost of acquisition
Backup and security Data is backed up and secured by vendor. As long as vendor does this properly, your data is safe Customer has full control of the backup and security. On the flip side, they will have to implement their own policy.
Support and maintainence Vendor maintains and updates the software. The customer usually is not involved. Maintainence and updates of the software lies with the customer
Customization Less customizable than installed software Is customizable as the implementation does not affect other customers

Which option is right for you?

The best option for you will depend on your specific needs and requirements. If you want a simple, easy-to-use solution, hosted timesheet is a good option. If you need more control over the software, installed timesheet is a better choice

Here are some factors to consider when choosing between hosted and installed timesheet:

  • Cost: Over long term Hosted timesheet is typically more expensive than installed timesheet.
  • Security: Hosted timesheet is generally more secure than installed timesheet, as the provider is responsible for security and maintenance
  • Scalability: Hosted timesheet is more scalable than installed timesheet, as it is easier to add users and increase capacity.
  • Support: The quality of support depends on the timesheet vendor.

So what are the factors to consider while choosing a software suite?

Hosted software may be a good option if you are looking for a simple, easy-to-use, affordable, scalable solution.

Installed software may be better if you need a more customizable solution with better performance and control

Here are some factors to consider when choosing between hosted and installed software:

  • Your budget: Hosted software is typically more expensive than installed software over long run.
  • Your needs: Do you need a simple, easy-to-use solution? Or do you need a more customizable solution with better performance and control?
  • Your scalability: Do you need a solution that can be scaled to meet changing needs?
  • Your security requirements: If you have sensitive data, consider installing software to have more control over data security.
  • Your IT resources: If you have limited IT resources, hosted software may be a better option because it requires less maintenance and support.
  • Your future growth plans: If you plan to grow your business, consider installing software to scale up your software as your needs grow.

Once you have considered these factors, you can decide which type of software is right for your business.


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